FINANCIAL INSTITUTION BONDS AVAILABLE RIDERS AND THEIR USES

(September 2022)

BACKGROUND

This list identifies forms and endorsements available to attach to the Surety and Fidelity Association of America (SFAA) Financial Institution Bonds. It is arranged by form number and title and includes a brief explanation of the use of each form. It does not address state-specific forms, endorsements, changes or amendments.

BOND FORMS

Financial Institution Bond–Standard Form No 14

This bond is used to cover Stockbrokers and Dealers.

Financial Institution Bond–Standard Form No. 15

This bond is used to cover Mortgage Bankers and Finance Companies.

Credit Union Blanket Bond–Standard Form No. 23

This bond is used to cover Credit Unions.

Financial Institution Bond–Standard Form No. 24

This bond is used to cover all types of Commercial Banks, Savings Banks, and Savings and Loan Associations.

Financial Institution Bond–Standard Form No. 25

This bond is used to cover Insurance Companies.

Excess Bank Employee Dishonesty Bond–Standard Form No. 28

This bond provides excess employee dishonesty coverage for Commercial Banks.

BOND RIDERS

These forms are in numerical order.

SR 5035c–Eliminate Branch Offices

This rider is used to specifically delete branch offices from coverage.

SR 5046d–Increase–Decrease Rider

(Use with Standard Form No. 23)

The limit on the bond can be increased or decreased as of a certain date. This rider explains the impact of the decrease on losses that occurred prior to the effective date of the decrease that was discovered at a later date.

SR 5077d–Maintenance Employees Rider

(Use with Standard Form No. 24)

This rider excludes losses caused by maintenance employees who occupy designated positions listed on the rider from all coverage. The only exception is for robbery or burglary losses that are covered under Insuring Agreements (B) or (C).

SR 5083c–General Cancellation Clause Rider

This is a termination amendment that specifically names an entity that must be notified prior to cancellation. It also states the number of days of notice that entity must receive.

SR 5089b–Statutory Coverage Rider

(Use with Standard Form No. 24)

This rider broadens the definition of Employee to meet the statutory requirements of the insured’s state of incorporation.

SR 5109a–Adding or Deducting Insureds Rider

This rider is used to add or delete Joint Insureds.

SR 5149b–Add a Branch Rider

(Use with Standard Form No. 23)

This rider is used to add branch offices.

SR 5150b–Rider Canceling an Existing Rider–Loss-Sustained Form

This rider deletes specific riders on the bond by describing the bond and stating the effective date of deletion. An explanation of how the deletion impacts the loss-sustained coverage is provided.

SR 5151b–Change of Name or Address Rider

This rider is used to change the insured's name or address.

SR 5155b–Verification Certificate

This certificate does not alter coverage. It is used to verify that the particular bond exists.

SR 5261c–Co-Surety Rider

This rider permits a number of underwriters to provide coverage on the same insured. Each takes a portion of the insured’s limits.

SR 5262a–Concurrent Insurance Rider

The insured agrees to carry designated insurance that must run concurrently with the bond. If the agreement is not kept, any covered bond loss is adjusted as though the required insurance had been purchased.

SR 5297c–Increase–Decrease Rider

(Use with Standard Form No. 23)

This rider increases or decreases the limit of liability for the Misplacement Insuring Clause or the Forgery Insuring Clause. This rider can be used only when either SR 5377 or SR 5379 riders, that are used to provide these insuring clauses, are attached.

SR 5307c–Valuation Clause Rider (05 11 change)

(Use with Standard Form No. 14)

This rider is used to amend the valuation of the rate of exchange and securities to be the value on the day preceding the loss.

SR 5347b–Closing Attorneys Rider–Title Insurance Companies

(Use with Standard Form No. 15)

Insureds that are title companies can use this form to add closing attorneys and their employees as their own employees.

SR 5376a–Exclusion of Industrial Agents Rider

(Use with Standard Form No. 25)

This rider adds coverage for misplacement and mysterious unexplainable disappearance to Insuring Clauses (B) and (C). The amount can be the same as the limit for other parts of Insuring Clauses (B) and (C) or can be limited to the amount entered on the rider.

SR 5377–Misplacement Rider

(Use with Standard Form No. 23)

SR 5379–Forgery and Alteration Insuring Clause Rider

(Use with Standard Form No. 23)

This rider is used to add forgery and alteration coverage to the bond. The limit entered on the rider is subject to the bond’s limit of liability section.

SR 5380b–Faithful Performance Rider

(Use with Standard Form No. 23)

This rider broadens Insuring Clause A by adding coverage for faithful performance. However, it restricts coverage for all of Insuring Clause A because loss is covered only if the intent was to cause financial loss to the insured and to benefit the employee. Five exclusions are added and forgery is restricted because of the definition added.

SR 5398a–Joint Insured Rider–Loss Sustained Form

This rider is attached to loss-sustained bonds to explain how the bond acts when more than one insured is named on the bond. It should not be attached to any bond that has a section for Joint Insureds.

SR 5531a–Rider Canceling an Existing Rider–Discovery Form

This rider is used to delete specific riders on the bond by describing them and stating the date the rider is deleted. It also explains how the deletion impacts coverage because the bond is on a discovery basis.

SR 5558–(Territory) Rider

(Use with Standard Form No. 23)

This rider broadens coverage under Insuring Clause B to include Puerto Rico, the Virgin Islands, or the Canal Zone based on entries made.

Note: The rider also lists Alaska and Hawaii, but they became states after this rider was introduced so are now part of the territory event with without this rider.

SR 5583d–Exclude Servicing Contractors

(Use with Standard Form No. 24)

This rider is used to modify SR 5869–Servicing Contractor rider. It deletes coverage for any listed servicing contractor(s).

SR 5604a–Rider

(Use with Standard Form No. 25)

This rider broadens coverage under Insuring Agreement (B) to include covered property located or deposited with the specific government listed on the rider, other than the United States or Canada.

Note: This rider applies to the 05 11 edition of the bond.

SR 5673a–Draft-Signers Rider

(Use with Standard Form No. 25)

Policyholders authorized by contract with the insured to sign drafts and settle claims on the insured’s behalf are considered employees under Insuring Agreement (A) when this rider is attached.

SR 5697a–Foreign Employees Rider

(Use with Standard Form No. 28)

This rider is used to broaden coverage to apply to employees who work at offices located in the countries listed on the rider.

SR 5711c–Clause (D) Aggregate Deductible Rider

(Use with Standard Form No. 23)

This rider adds a deductible for Forgery Insuring Clause D. It is attached only if rider SR 5379 is on the bond because Forgery is not part of the standard bond.

SR 5769d–Cancellation Rider (05 11 change)

(Use with Standard Form No. 14)

This rider adds a requirement that the New York Stock Exchange (NYSE) must be notified if the bond is cancelled, terminated, or modified substantially. It is used for only members of the NYSE.

SR 5777b–Cancellation Rider

(Use with Standard Form No. 14)

This rider adds a requirement that the exchange listed on the rider be notified if the bond is cancelled, terminated, or modified. It is used with only members of the exchange listed on the rider.

SR 5784b–Rider

(Use with Standard Form No. 14)

This rider is attached when the insured does not have any employees but is required to provide a bond in order to be a member of any recognized stock exchange. The insured must notify the issuer of the bond if it adds employees.

SR 5795d–SBA Cancellation Rider

(Use with Standard Forms No. 15 and 24)

Cancellation can occur only if the Small Business Administration is sent notice of cancellation by certified mail. The notice must be sent at least 30 days in advance of the cancellation.

SR 5797c–Rider (05 11 change)

(Use with Standard Form No. 15)

This rider is required for any Real Estate Investment Trust that meets the Treasury Department Decision T.D. 6595 definition of a REIT. This rider significantly changes the director’s exclusion.

SR 5804f–Bank Money Order Issuer Rider

(Use with Standard Form No. 24)

Businesses the bank authorizes to issue registered checks or personal money orders are included as employees when this rider is used. Actions of all employees of a single entity are considered as the actions of a single employee.

SR 5834c–S.E.C.–Sole Insured Cancellation Clause Rider

(Use with Standard Form No. 14)

This rider amends the termination section to provide no less than 60 days’ notice to the Securities and Exchange Commission prior to cancellation.

SR 5851b–Data Processing Rider

(Use with Standard Form No. 23)

The definition of employee is broadened to include data processing businesses that provide contract services to the insured. Each data processing businesses is considered a single employee and all of their partners, officers, and employees are that single employee.

SR 5856c–U.S. Savings Notes Rider

(Use with Standard form No. 23)

This rider adds United States Savings Notes to the bonds listed as covered within the provision for redemption of United States Savings Bonds.

SR 5861b–Deductible Rider-Form No. 23

(Use with Standard Form No. 23)

The Credit Union Bond does not contain a deductible provision. This rider must be attached when a deductible is required.

SR 5869g–Servicing Contractors Coverage–Discovery Form

(Use with Standard Form No. 24)

A new insuring agreement is introduced when this rider is attached. The rider covers the dishonesty of s servicing contractor similar to Insuring Agreement (A) and loss of money and securities in the service contractor’s custody similar to Insuring Agreements (B) and (C). The term servicing contractor is defined with the rider. All benefits from this insuring agreement are for the insured not the servicing contractor. A servicing contractor provides services on various properties owned by or under mortgage to the financial institution.

SR 5885–Safe Deposit Box Exclusion Rider

(Use with Standard Form No. 23)

A new exclusion is added. The loss of property in a customer’s safe deposit box is excluded unless the loss is due to dishonest acts of the insured's employees.

SR 5886h–Automated Teller Machine Exclusion; Blanket "On Premises" Coverage: Schedule of Excluded Locations of Unattended Devices

(Use with Standard Form No. 24)

This rider broadens coverage for ATMs beyond branch bank locations to any other location. Exclusions apply for vandalism, mysterious disappearance, and for loss to persons who access the ATM. These exclusions do not apply to Insuring Agreement (A).

SR 5887d–Credit, Debit, Charge, Access, Convenience, Identification, or Other Card Exclusion

(Use with Standard Form No. 23)

This rider excludes losses due to credit, debit, charge, access, convenience, identification, or any other type of card that provides access to funds. This exclusion does not apply to Insuring Clause (A).

SR 5907a–Insuring Agreement (G) Rider

(Use with Standard Form No. 14)

This rider introduces a new insuring agreement. It provides coverage for forgeries of the insured’s facsimile signature.

SR 5922b–Excluding Closing Attorneys

(Use with Standard Form No. 24)

This rider is used to exclude from the definition of employee any entity that is acting as a closing attorney for title transactions that are related to loans made by the insured.

SR 5923c–Cancellation Rider

(Use with Standard Form No. 23)

This rider makes two changes to Section 10. Termination. It changes the cancellation notice time period from 30 days to 60 days. It also states that the National Credit Union Administration (NCUA) must be notified when the bond excludes a particular employee.

SR 5935j–Extortion–Threats to Persons Rider

(Use with Standard Form Nos. 14, 15, 24, and 25)

This rider introduces a new insuring agreement. It provides coverage for Extortion–Threats to Persons. It covers loss of property surrendered away from an office of the insured as a result of a threat communicated to the insured to do bodily harm to a director, trustee, employee, or partner of the insured or to one of their relatives.

SR 5936e–Extortion Exclusion Rider

(Use with Standard Form No. 23)

The extortion exclusion is introduced with this rider. The exclusion does not apply Insuring Clause (A).

SR 5943e–Extortion–Threats to Persons Rider

(Use with Standard Form No. 23)

SR 5955c–Holding Company-As Joint Insured

The broadening rider explains that entities the insured acquires or forms during the bond term are insureds under this bond. The only such entities that would not be covered are holding companies.

SR 5956b–Extortion–Threats to Persons Rider–Branch Office Exclusion

This rider excludes extortion threats to persons working primarily at the offices listed on this rider from coverage under the Extortion–Threats to Person Insuring Agreement/Clause.

SR 5965–Termination Section Amendatory Rider

(Use with Standard Form No. 23)

This rider deletes the third paragraph of the termination section. This means that cancellation notice to the Bureau of Federal Credit Unions is not required.

SR 5967e–Central Handling of Securities

(Use with Standard Form Nos. 14, 24, and 25)

Coverage is extended for certificated securities while in depositories listed on the rider. Coverage is for only the insured. All rights the insured has against the depository, because of the loss, transfer to the Underwriter.

SR 5969a–Cancellation Rider

(Use with Standard Form No. 14)

This rider requires that the National Association of Securities Dealers be notified of any cancellation or modification of coverage. However, failing to do so does not affect the cancellation.

SR 5971a–S.E.C.–Joint Cancellation Clause Rider

(Use with Standard Form No. 14)

This rider states that all insureds named on the bond that are registered management investment companies must receive a copy of the bond and must also receive 60 days’ notice of cancellation or modification. Each such named insured must also receive copies of all claims and claim settlements The Securities and Exchange Commission must also receive 60 days’ notice of cancellation.

SR 5976d–Agents Rider

(Use with Standard Form No. 24)

This rider is used by insureds that are Savings and Loan Associations or Savings Banks to add an agent(s) of the insured as an employee but for only the amount on the schedule for that agent.

SR 5991a–Extortion–Threats to Property Rider–Branch Office Exclusion

This rider is used to list offices that are excluded from coverage under Extortion–Threats to Property Insuring Agreement/Clause. This rider excludes extortion threats to damage the property located at the offices listed on this rider from coverage under the Extortion–Threats to Property Rider Insuring Agreement/Clause.

SR 6000e–Extortion–Threats to Property Rider

(Use with Standard Form No. 23)

This rider introduces a new insuring agreement. It provides coverage for Extortion–Threats to Property. It covers loss of property surrendered away from an office of the insured as a result of a threat communicated to the insured to do damage to the insured’s property or premises.

SR 6003f–Extortion–Threats to Property Rider

(Use with Standard Form Nos. 14, 15, 24, and 25)

6004a–Cancellation Rider

(Use with Standard Form No. 14)

This rider requires that the Securities and Exchange Commission be notified of any impending cancellation or modification of coverage. Failing to do so does not affect the cancellation.

SR 6026a–Automated Teller Machine Exclusion; Blanket "On Premises" Coverage; Schedule of Excluded Locations of Unattended Devices

(Use with Standard Form No. 23)

Coverage for ATM is limited to only the locations and circumstances described in the rider. A separate limit is required for each location and a deductible for each machine. The limit is a sublimit of the bond limit and not an additional amount. The limitations do not apply to Insuring Clause (A).

SR 6027g–Trading Loss Rider

(Use with Standard Form Nos. 15 and 25)

This rider adds full or partial coverage under Insuring Agreement (A) with respect to trading losses.

SR 6035b–Amendatory Rider for Credit Union Blanket Bond

(Use with Standard Form No. 23)

This rider significantly changes Insuring Clause by taking it from one paragraph to multiple paragraphs. It requires that no loss is covered unless the intent of the action to cause financial loss to the insured and to benefit the employee. Five exclusions are also added and forgery is restricted through a definition.

SR 6059a–Effective Time Rider

(Use with Standard Form No. 23)

This rider changes the time of inception and expiration to 12:01 A.M. instead of noon when it is attached.

SR 6064b–Uncollected Funds Exclusion

(Use with Standard Form No. 23)

This rider excludes any loss when a depositor’s account has a payout or withdrawal because a deposit could not be collected. This exclusion does not apply to Insuring Clause (A).

SR 6095b–Trading Loss Rider

(Use with Standard Form No. 23)

This rider excepts Insuring Clause (A) from the Trading Loss exclusion for the amount scheduled on the endorsement.

SR 6100f–Delete Data Processing Coverage

(Use with Standard Form Nos. 14 and 24)

This rider deletes data processors from the definition of employee and any coverage that would have been available for their actions under Insuring Agreement (A).

SR 6110f–Loss Sustained Rider

(Use with Standard Form Nos. 14, 15, 24, 25, and 28)

This rider converts a bond written on a discovery basis to a loss-sustained basis. It may be attached only when the bond is issued.

SR 6111c–Delete Loan Participation Coverage

(Use with Standard Form No. 24)

This is a restrictive rider. If the insured participates in a loan with another financial institution and collateral is given to that other financial institution, coverage for that collateral is provided under this bond’s Insuring Agreement (E) only if an employee of the insured had physical possession of the collateral prior to the loan.

SR 6133b–Computer Systems Fraud Insuring Clause

(Use with Standard Form No. 23)

The Computer Systems Fraud Insuring Clause is added when this rider is attached.

SR 6137c–Joint Insured Varying Single Loss Deductible Rider

(Use with Standard Form Nos. 14, 15, 24, 25, and 28)

This rider allows each joint insured to have a different deductible.

SR 6139b–Financial Industry Regulatory Authority Rider (05 11 change)

(Use with Standard Form No. 14)

This is a mandatory rider. It makes the bond comply with the Financial Industry Regularly Authority.

SR 6145b–ERISA Rider

(Use with Standard Form Nos. 23 and 28)

This rider is used to satisfy the requirements of the Employee Retirement Income Security Act (ERISA) of 1974.

SR 6150e–Amend Declarations Page–Discovery Form

(Use with Standard Form Nos. 14, 15, 24, and 25)

This rider can be is used to change the bond’s declarations at any time during the bond period. The only exception is that the aggregate amount can be changed but only as of the inception date of the bond.

SR 6151b–Coinsurance Rider

This rider requires a coinsurance percentage entry. This percentage is multiplied by the amount of loss to determine the amount paid. This is used when multiple underwriters provide bonds for a specific insured.

SR 6157c–Savings and Loan Association Rider

(Use with Standard Form No. 24)

This rider is mandatory for any Savings and Loans Association or a Savings Bank under federal supervision. It adds Audit Expense Coverage to Insuring Agreement (A) for a scheduled limit and also adds cancellation notice requirements for appropriate federal offices.

SR 6158–Amend Declarations Page–Standard Form No. 28

(Use with Standard Form No. 28)

This rider is used to amend three items on the declarations.

SR 6168–Partnership Coverage

(Use with Standard Form No. 14)

The bond is stripped of all coverage except for that provided by Insuring Agreement (A) when this rider is attached. Coverage provided under Insuring Agreement (A) is restricted to only actions of partners.

SR 6171b–Savings Bank Rider

(Use with Standard Form No. 24)

This rider is used with Savings Banks insureds to provide coverage for the actions of salaried, pensioned, or elected officials.

SR 6172b–Amend Declarations Page–Loss Sustained Form

(Use with Standard Form Nos. 14, 15, 24, and 25)

This rider is used to amend three items on the declarations.

SR 6182a–Aggregate Limit–Reinstate or Increase

This rider is used to reinstate or increase an aggregate limit. The change can be mid-term.

SR 6183–Definition of Employee–Attorneys

(Use with Standard Form No. 25)

This rider revises the definition of employee to limit the attorneys who can be considered employees to only the attorneys who provide specific services listed on the rider.

SR 6184a–Voice Initiated Transfer Fraud Insuring Agreement

(Use with Standard Form No. 24)

This rider adds a Voice Initiated Transfer Fraud Insuring Agreement.

SR 6185–Agents' Fidelity Insuring Agreement

(Use with Standard Form No. 25)

This rider covers life insurance companies’ insureds for their agents’ dishonesty. Limits can be established by type of agent. Premiums collected by life insurance company agents belong specifically to the life insurance company and are customarily deposited in an account the agent maintains in the life insurance company's name. The life insurance company withdraws those funds, not the agent. This is quite different than the way that property and casualty agents handle these transactions and is the reason why they are not covered the same way.

SR 6186a–Freddie Mac, Fannie Mae, Or Ginnie Mae Rider

This rider can list Freddie Mac, Fannie Mae, or Ginnie Mae so they can receive notification of cancellation or modification. Failing to notify them does not affect the cancellation or modification.

SR 6187b–Voice Initiated Transfer Fraud Insuring Clause

(Use with Standard Form No. 23)

This rider adds a Voice Initiated Transfer Fraud Insuring Agreement.

SR 6188–Retroactive Date Rider/Endorsement

(Use with Standard Form Nos. 14, 15, 24, 25, and 28)

This rider adds a retroactive date to the bond. This means that any loss prior to that date is excluded even when it is first discovered during the current bond term.

SR 6193–Retroactive Date Rider/Endorsement–Joint Insured

(Use with Standard Form Nos. 14, 15, 24, 25, and 28)

This rider adds a retroactive date to the bond. However, it applies only for the losses of the joint insured listed on the rider.

SR 6196–Computer Systems Fraud Insuring Agreement

(Use with Standard Form Nos. 14, 15, and 25)

This rider is used to add a Computer Systems Fraud Insuring Agreement.

SR 6199–Retroactive Date Rider/Endorsement–Merger, Consolidation, or Purchase of Assets

(Use with Standard Form Nos. 14, 15, 24, 25, and 28)

This rider is used to add a retroactive date to the bond. However, it applies to only the institution(s) listed on the rider.

SR 6220a–Transit Cash Letter Insuring Agreement

(Use with Standard Form No. 24)

This rider is used to add a Transit Cash Letter Insuring Agreement.

SR 6254–Terrorism Rider

This rider excludes all losses related to domestic and foreign terrorism. It defines terrorism.

SR 6256–Computer Failure Rider

(Use with Standard Form Nos. 14, 15, 23, 24, and 25)

This rider excludes all computer losses related to a computer that is unable to read a date. It is similar to other Y2K exclusions. There is an exception for when a loss occurs along with a computer failure and the loss and its amount can be established without relying on the failure.

SR 6257–Computer Failure Exclusion Rider

(Use with Standard Form Nos. 14, 15, 23, 24, and 25)

This rider excludes all computer losses related to a computer that is unable to read a date. It is similar to other Y2K exclusions. It does not have any exceptions.

SR 6263a–On Premises Rider

(Use with Standard Form Nos. 14, 15, and 25)

This rider provides coverage for damage to the office under Insuring Agreement B because of theft or attempted theft. Coverage applies only if the insured owns the office or is legally liable for it and the loss was not due to fire.

SR 6268b–Extortion–Threats to Property Rider

(Use with Standard Form Nos. 14, 15, 24, and 25)

This rider introduces a new insuring agreement that provides coverage for Extortion–Threats to Property. It covers loss of property surrendered away from an office of the insured as a result of a threat communicated to the insured to do damage to its property or premises.

SR 6269a–Delete Data Processing Coverage

(Use with Standard Form Nos. 14 and 24)

This rider deletes data processors from the definition of employee and any coverage that would have been available for their actions under Insuring Agreement (A).

SR 6270b–Extortion-Threats to Persons Rider

(Use with Standard Form Nos. 14, 15, 24, and 25)

This rider introduces a new insuring agreement that provides coverage for Extortion–Threats to Persons. It covers loss of property surrendered away from an office of the insured as a result of a threat communicated to the insured to do bodily harm to a director, trustee, employee, or partner of the insured or to one of their relatives.

SR 6271b–Fraudulent Transfer Instructions Rider

(Use with Standard Form Nos. 14, 24, and 25)

This rider introduces a new insuring agreement. It provides coverage for losses due to money or securities that are transferred out of a customer’s account based on fraudulent instructions.

SR 7000–Telefacsimile Transfer Fraud Insuring Clause

(Use with Standard Form No. 23)

This rider introduces a new insuring agreement. It provides coverage for losses due to money or securities that are transferred out of a customer’s account based on fraudulent instructions. It applies only if the Computer System Fraud Insuring Agreement covers the computer system.

FINANCIAL INSTITUTION BONDS AVAILABLE RIDERS AND THEIR USES

BACKGROUND

CATEGORIES

BOND FORMS

BOND RIDERS